Operators need to adopt a proactive churn-prevention strategy to survive and thrive in the crowded and fiercely competitive residential services market according to a recent report by Forrester Research.
In residential services, churn is the rate at which consumers switch service providers for their home TV, phone, Internet, and bundled services.
A better understanding of when and why consumers abandon their service contracts can help providers in their quest to reduce churn and increase loyalty, according to report author Sally Cohen.
The analyst says “consumers’ churn habits exhibit patterns of when in their contract life cycle they consider switching providers. In addition, only a handful of motivators — satisfaction with cost, quality of service, and customer care — have a major influence on churn.”
Cohen advises product strategists at telcos and cablecos “create a preventative — rather than reactive — customer retention strategy.”
